The stock of the Weber grill manufacturer
WEBER
+29.42%
closure:0
opening:6.49
High:7.28
low:6.41
cycle:—
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(NYSE: WEBR) is soaring in trading today after its largest shareholder BDT Capital Partners, which owns 48.2% of the shares, offers to buy all the main shares at a price of $6.25 per share – in cash. The stock that closed yesterday at a price of $5.03 per share jumps today by 30% to a price of $6.57 per share, more than the price the buyer offered. In practice, the offer reflects the company’s market value of approximately 1.85 billion dollars.
“Our offer offers immediate liquidity to the company’s public shareholders, while eliminating the risks to the public shareholders in the market and in the current operating environment that the company’s current leverage position is not sustainable and that the company may not be able to recapitalize,” said BDT. In a document submitted to the American Securities and Exchange Commission.
Earlier, Weber’s board of directors formed a special committee, consisting of independent directors, to consider various proposals for the company.
Following the announcement, Wells Fargo analyst Chris Carey issued a quick update and upgraded his recommendation on the stock to ‘market yield’ from ‘underweight’ and raised his target price to $6.25, compared to $4 in the previous update. Carey wrote that “although this is below the issue price of $14 and the recent levels in the stock, this is because the stock was under significant pressure.” And for that it was said – thank you really for upgrading the recommendation to investors after the purchase offer. The goal of analysts’ analyzes is to help the investing public achieve excess profit over the market, not to chase the return that was already there.
Weber went public in New York in August 2021. Its first full year as a publicly traded company was difficult. The stock is down 48% so far, and before the third quarter reports in August, Weber said the CEO was leaving and even issued a sales warning for the quarter, blaming inflation, supply chain problems and the strong US dollar as factors that hurt it.
After the profit warning, when the reports were published, revenues actually exceeded expectations, but gross profit was cut by 49% to $154 million, compared to $299 million in the same period last year.
Weber cited the higher costs of transportation and goods, as well as sales promotion activity “in a macro environment that slowed down the movement of surfers” and as mentioned the American currency as factors that hurt her
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